The shift to mobile advertising is gaining steam, and its important for Australian businesses to keep up.
Consumer shift to mobile devices is to blame for what many Google critics considered its biggest challenge: overcoming a seemingly ever-declining Cost-Per-Click (CPC) rate on Google PPC campaigns.
Of Facebook’s $3.83 billion in ad revenue last quarter, about 76% was generated from mobile spots. That figure is up from last year, in which 62% of ad sales were of the mobile variety. One look at Facebook’s ever-increasing MAU growth makes it clear why so much of its revenue is being derived from mobile users.
Facebook boasts just shy of 1.5 billion MAU’s (monthly active users) equal to about half the connected people on the planet, and nearly all of them have gone mobile. Over 1.3 billion of Facebook’s 1.49 billion monthly users access the site via their mobile device.
It was just a few months ago that Google announced mobile search had, for the first time ever, surpassed desktop in 10 different countries, including the lucrative U.S. and Japan markets.
Like Facebook, Google recognises that when it comes to ads, “relevancy now triumphs over brand loyalty.” Meaning, mobile or not, getting the right ad in front of the right person at the right time is the recipe for success.
For the first time ever, according to eMarketer, 2015 will see more digital ad spending on mobile than desktop. An expected, 51.9% of marketing ad dollars will be spent on mobile spots this year thanks to consumer’s growing appetite for “non-voice” mobile usage. For example, in the U.S., eMarketer suggests that adults spend nearly three hours a day on their mobile devices for reasons other than talking. Of that daily mobile time, over half are using smartphones for reasons other than chatting.
$30.45 billion is expected to be allotted to digital mobile advertising this year!
In just four years, mobile ad spend is expected to more than double to over $65 billion. In fact, in just a couple of years, digital spots in general — both mobile and desktop — will surpass TV ad spend, and a growing majority of the online marketing will be directed to mobile users.
Having a mobile responsive website is not negotiable in todays online environment.
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